What is the monthly rental payment for Carbones Pizzeria's operating lease with the related party?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
ut of the ordinary course of business. The Company does not believe that these legal actions will have a material adverse effect on the Company's financial position, results of operations or cash flows.
Operating Lease
The Company has a month-to-month operating lease with a related party. Rental payments are $8,000 a month. The lease also provid
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the company leases a facility from a limited liability company owned by the stockholder. The monthly rental payments are $8,000.
In addition to the base rent, Carbones Pizzeria is also responsible for paying property taxes, maintenance, insurance, and other occupancy expenses related to the leased premises. The total rent expense for this facility for the year ended October 31, 2023, was approximately $82,000.
This arrangement is considered a related party transaction, meaning the lease is with an entity connected to the company's stockholder. Prospective franchisees should be aware of these related-party transactions, as they may have implications for the company's financial performance and stability. It is important to note that the lease is on a month-to-month basis, which could provide flexibility but also introduces the risk of potential changes in lease terms or termination.